Capital One Grows Auto Finance Business in Q3
Despite a quarterly drop in originations, Capital One grew its auto finance business by $1.2 billion in the third quarter.
MCLEAN, Va. — Capital One’s grew its auto finance business by $1.2 billion to $26.4 billion in third quarter despite a quarterly drop in originations.
Auto originations totaled $3.90 billion during the third quarter, falling from first- and second-quarter totals of $4.30 and $4.27 billion, respectively. But they were up from a year ago, when originations totaled $3.40 billion.
From the second to third quarter, auto finance loans grew $1.4 billion, or 6 percent, to $25.9 billion, which company officials attributed to strong growth in the business.
Additionally, Capital One’s net charge-off rate for auto increased 68 basis points, which the company attributed to seasonality.
The business unit’s period-end loans held for investment also jumped from $25.25 billion in the second quarter and from $20.42 billion in the year-ago period to $26.43 billion.
The performance of its auto division contributed to Capital One’s 14 percent increase in total revenue, which came in at $5.8 billion.
More Auto Finance
Automotive Consumers Sink Further in Debt
Most financing metrics hit records in the second quarter as more buyers locked themselves into long terms and high monthly payments.
Read More →
Porsche Financial Services Shifts Structure
After 36 years with Porsche, the Financial Services Chief Financial Officer Konrad Riedl is retiring, and the department is realigning its management structure.
Read More →
Tariffs Could Raise Insurance Premiums
As U.S. import tariffs affect repair costs, consumers might find it more affordable to replace a damaged vehicle, according to recent Insurify tariff analysis.
Read More →
Smaller Loans, Longer Terms
The youngest generation of car buyers is more likely to finance less expensive vehicles, more than half of generation Z consumers borrowing less than $25,000.
Read More →
New Cars a Tad More Affordable
May averages show that combined circumstances gave auto consumers slightly better buying power for the month, though average prices were up year-over-year.
Read More →
First-Quarter Sees Long Auto Loan Growth
Experian data show more consumers are tapping the method, along with refinancings, to afford buying. Meanwhile, subprime borrowers are getting more access.
Read More →
Mastering Credit Friction
In this video, Josh Krach explains how to turn credit friction into an advantage.
Read More →
April Less Affordable
Based on prices, reduced incentives and slower household income growth, consumers found it more challenging to buy new last month, Cox Automotive reported.
Read More →
Auto Lenders, Consumers on a Tightrope
April borrowing data shows that more consumers are bending over backward to buy vehicles, though subprime lending cooled off for the month.
Read More →
Toyota Financial Services President Replaced
Scott Cooke has served in various roles with Toyota Financial Services for over 20 years, including president and CEO, which he retires from on June 30.
Read More →